'We expect an increase in the residential supply in the pipeline in 2011 mainly due to the record land supply the government has announced it will push out in the second half of 2010,' the bank said in a report.

In addition, it said it expects prices to enter a down-cycle if the government revises policies to increase public housing supply in the next six to 12 months.

It said it also forecasts launch prices to decline by 20 per cent in the mass market districts and 10 per cent in the prime districts in 2011.

Broker rating and target price:

CapitaLand, In-line, $3.95

City Developments, Underperform, $9.27

Keppel Land, Underperform, $3.35

-- REUTERS

This piece of fresh news has affirmed my views on the current property market. Property prices are indeed going towards the downcycle, if you have followed the chart from the URA website. If not, at least housing prices will stagnate.

Well, well, time to follow these steps.

1. Choose the district/area that you would like to buy your property.
2. Decide how many bedrooms you want.
3. Access http://www.ura.gov.sg/ weekly to check the transacted prices.
4. Get a reliable and trustworthy agent to update you. They have first hand news about the market sentiments.
5. Check with the bank for an in-principle approval of home loan.
6. Keep a record of your CPF statements, remember the minimum sum rule.
If you do not know how to do the calculations, I am glad to be of serivce.
7. Build more cash in the war chest.
8. Wait patiently.